Basically we are into ready made garment exports. Now my question is, we have made export shipment of USD 350000/- to a particular buyer in FY 2008-09 & all the payments have been relised in full for the same. Now the buyer is asking for the discount of USD $23000/-. While we approached our bank for TT Payment, they are asking us to surrender the proportionate drawback amt. I understand that if the discount amt is below 10% we need not surrender the export incentive. So I request you kindly advice in this matter.
05 October 2009
Yes you are right santosh , but discount is always adjusted in invoice in fob value, otherwise it can be deemed that you have overinvoiced the sales bill to claim government benefit . Its not a usual case when u receive forex and then remit back in the nature of discount. You are not supposed to surrender if the amount received is 90% , but when u receive 100% and want to remit 10% back , i think an issue may be created.
CAclubindia
